A BILL TO BE ENTITLED
AN ACT to allow MUNICIPALITIES that receive an allocation of Funds from the highway fund and the highway trust fund for the purposes of providing qualifying municipalities with monies for repair, maintenance, construction, reconstruction, widening, or improving streets of the MUNICIPALITY AN option to elect to continue to receive allocations or have the allocation reprogrammed to fund any project on the Department of TRANSPORTATION'S Transportation IMPROVEMENT list. 
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§  136‑41.4. Municipal use of allocated funds; election.
A municipality that qualifies for an allocation of funds pursuant to G.S. 136‑41.1 shall have the option to accept all funds allocated to the municipality, under that section, for the repair, maintenance, construction, reconstruction, widening, or improving of the municipality's streets, or the municipality may elect to have some or all of the allocation reprogrammed for any Transportation Improvement Project currently on the approved project list within the municipality's limits or within the area of any metropolitan planning organization or rural planning organization.
If a municipality chooses to have its allocation reprogrammed, the minimum amount that may be reprogrammed is an amount equal to that amount necessary to complete one full phase of the project selected by the municipality or an amount that, when added to the amount already programmed for the Transportation Improvement Project selected, would permit the completion of at least one full phase of the project."
SECTION 2.  This act becomes effective October 1, 2007.